Hope Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,369,200 Liabilities: Current liabilities $195,000 Note payable, 6%, due in 15 years 978,000 Total liabilities $1,173,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,759,500 Common stock, $10 par (no change during year) 1,759,500 Retained earnings: Balance, beginning of year $1,876,000 Net Income 609,000 $2,485,000 Preferred dividends $70,380 Common dividends 68,620 139,000 Balance, end of year 2,346,000 Total stockholders' equity $5,865,000 Sales $28,820,400 Interest expense $58,680 Assuming that total assets were $6,686,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. a. Ratio of fixed assets to long-term abiities 1.40 b. Ratio of liabilities to stockholders' equity 0.33 X C. Asset turnover 4.66X Previous Next > Check My Work Omore Check My Work uses remaining Emainstructor All work saved Submit Assignment for Grading Save and Ex FIN Update la Restart AB Microsoft Auto Update Updates are ready to be installed. Balance, end of year 2,346,000 Total stockholders' equity $5,865,000 Sales $28,820,400 Interest expense $58,680 Assuming that total assets were $6,686,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities 1.40 b. Ratio of liabilities to stockholders' equity C. Asset turnover 0.33 X 4.66 X . d. Return on total assets 9.86 X % e. Return on stockholders' equity 17.311 X % 1. Return on common stockholders' equity 30.61 X Feedback Check My Work a. Divide property, plant, and equipment (net) by long-term liabilities b. Divide toallabies by total stockholders'equity c. Divide sales by average total assets. Average total assets (Beginning total assets + Ending total). 2. To find ending total assets, use the accounting equation and substitute ending abilities stockholders equity for the amount d. Divide the sum of net income plus interest expense by average total assets. Average totalasses (Beginning total assets. Ending total assets). 2. To find ending total assets, use the accounting equation and substitute ending abilities stockholdersequily for the amount 6. Divide net income by average total stockholders equity. Average total stockholders equity (Beginning total stockholders equity Ending total sockholders equity 2 1. Divide net income minus preferred dividends by average common stockholders'equity. Common stockholders'equity - Common stock Retained earnings. Average common stockholders'equity (Beginning common stockholders equity + Ending common stockholders equity) - 2. Cho My Workomore Check My Work uses remaining Previous All work saved Email Instructor Save and it Submit Assignment for Grading